Turkish Treasury borrows over $2B through auctions

By Muhammed Ali Gurtas

ANKARA (AA) - Turkey's Treasury Undersecretariat held three separate auctions on Monday to borrow nearly 8.2 billion Turkish liras (around $2.2 billion) from the domestic markets, according to an official statement.

Turkey's Treasury reported that 1.07 billion Turkish liras ($289 million) in 12-month zero coupon bonds (new issuance) were sold at an auction. The bonds will be settled on Wednesday and mature on Oct. 24, 2018.

Total tender for the bonds was 1.38 billion Turkish liras ($372 million) with a 77.8 percent accepted/tendered rate, said the statement.

The undersecretariat stated that the interest rate of the newly issued 12-month zero coupon bonds was accepted at a 12.40 percent term rate.

At the second auction on Monday, the Treasury borrowed 4.25 billion Turkish liras ($1.15 billion) by selling 5-year fixed coupon bonds (semiannually, re-open, third issue) which will be settled on Wednesday and mature on Aug. 17, 2022.

According to the statement, that total tender for the 5-year fixed coupon bonds was 5.8 billion Turkish liras ($1.56 billion), with a 73.1 percent accepted/tendered rate.

The Treasury said the interest rate of the fixed coupon bonds was accepted at a 5.79 percent term rate, while annual simple and compound interest rates were 11.58 and 11.92 percent, respectively.

At Monday’s third auction, for 10-year CPI indexed government bonds (semiannually, re-open, third issue), the Treasury borrowed 2.87 billion Turkish liras ($775 million). The government bonds will be settled on Wednesday and mature on July 7, 2027.

The total tender for the 10-year bonds was 4.28 billion Turkish liras ($1.15 billion) with a 67 percent accepted/tendered rate.

The interest rate of the re-opened government bonds was accepted at a 1.44 percent term rate, with annual simple and compound interest rates of 2.88 and 2.90 percent, respectively.